Finance Minister Uttama Savanayana announced that the Cabinet has approved the Finance Ministry to issue a Royal Decree (R.D.) for a loan of 1 trillion baht aimed at economic relief and support. Of this amount, 600 billion baht will be allocated for public health, while 400 billion baht will be used for economic and social support. The R.D. will take effect in April, with borrowing starting in May.

Part of the loan will be used for a cash relief program distributing 5,000 baht, extending the duration from the original 3 months (April-May) to 6 months (April-June), allowing individuals to receive a total of 30,000 baht. This is intended to support self-employed individuals who registered through the website www.เราไม่ทิ้งกัน.com. For those affected who do not qualify for the 5,000 baht assistance, the Cabinet has instructed all ministries to expedite the consideration of additional support measures.

"The extension of the 5,000 baht assistance to 6 months is due to the increasing impact of COVID-19 on citizens and self-employed workers, with uncertainty about when the outbreak will end. Therefore, we need to assist this group, which has registered 24 million people. We will use 200 billion baht from the loan for this program, in addition to the previously allocated 45 billion baht. The number of eligible recipients will continue to increase from the initial group of 1.6 million people who meet the criteria and will start receiving funds from tomorrow onward, with the duration extended from 3 months to 6 months in total," he stated.

Additionally, the Cabinet has approved the Finance Ministry to issue a Budget Transfer Act (B.T.A.) for transferring 80 to 100 billion baht, which will be proposed for Cabinet approval and subsequently to the Parliament, aiming for completion by June 2020. The Cabinet also approved the Bank of Thailand (BOT) to issue a Royal Decree for soft loans of 500 billion baht for businesses and a Royal Decree to stabilize the financial sector by establishing a fund to purchase 400 billion baht in private debt securities.

The three Royal Decrees approved by the Cabinet will take effect in April, with loan procurement starting in May. The Finance Ministry will borrow 1 trillion baht primarily in Thai baht from various sources, completing the process by September 30, 2021, over a period of 1 year and 6 months. The borrowing will be staggered to align with budget usage, rather than being a one-time loan. It is estimated that public debt will reach 57% of GDP in 2021, based on projections from the Bank of Thailand, which anticipates a 5.3% contraction in the economy in 2020, followed by a 3% growth in 2021.

        The Budget Bureau has proposed a Budget Transfer Act, which the Cabinet has already approved. Ministries have been asked to consider budget transfers to combat COVID-19, utilizing uncommitted budgets such as those for training and seminars. In the future, the Budget Bureau will present the draft B.T.A. to the Cabinet, with an estimated budget of around 80 to 100 billion baht.

        The BOT has issued a Royal Decree to maintain financial stability by establishing the Corporate Bond Liquidity Stabilization Fund (BSF). The fund's mechanism is similar to a mutual fund, with a policy committee chaired by the Permanent Secretary of the Finance Ministry, alongside the BOT and the Public Debt Management Office (PDMO) overseeing it. Additionally, there will be an investment committee to assess the appropriateness of buying and selling.

Patricia Mongkolwanich, Director of the Public Debt Management Office (PDMO), stated that the tools used for borrowing 1 trillion baht will consider market mechanisms, such as issuing savings bonds. The sources of funds from the R.D. will allow borrowing in both Thai baht and foreign currencies. Currently, there are international organizations offering appealing COVID-19 packages, such as the Asian Development Bank (ADB), and the PDMO is assessing their suitability. However, the focus will primarily be on borrowing from abroad.

The government's debt repayment capacity remains at 21.2%, below the ceiling of 35%. If the Finance Ministry borrows 1 trillion baht, the state's debt burden will be at 7.4%, under the 10% ceiling.